Consumer goods giant will send circular to investors in November detailing
demerger plans for pharmaceutical division

Reckitt Benckiser, the maker of Cillit Bang, Vanish and Nurofen, is to reveal to shareholders details of its plans to spin off its pharmaceutical division into a separate stock listing.

The chief executive, Rakesh Kapoor, is expected to send a circular to investors on November 17 laying out plans to hand them shares in the new London listing in a fixed proportion to their existing shareholdings in the consumer goods giant.

The listing will not be open to new investors, nor be used to raise new money.

The circular will then start a 30-day clock before Reckitt Benckiser Pharmaceuticals (RBP) can debut on the main market, according to sources.

It is understood that the exact valuation of the business is still being thrashed out in the wake of RBP’s declining sales.